Just Curious...

[jamespucyk]

I am reviewing the FSA, as I will be doing til the exam hits, anyhow, I was reflecting on how much easier it is to actually know that, for instance, accounting method X has this and this immediate effect (I.e. higher depreciation expense in earlier yrs for accelerated dep.) and then have the effect trickle through the finanicial statements. Olbviously have a fundamental understanding of the ratios and the effects of that is needed and after the FSA isn't that bad. Are people out there actually memorizing this stuff (don't get me wrong there are a few things that you may have to memorize), but you should approach it through a trickle down ideology IMO. What does everyone else this and is there anyone who actually has memorized all of this stuff?

 

[CFAHouston]

I am memorizing the formula (FSA - Dupont, turnover, etc). However, fundamentals like how does deprectation method, lease method, and so on effect financial statments are somthing that cannot be memorized. Those are the concepts that will be tested, which cannot be gained from memory, but understanding.

 

[UIFinance]

I think you can still memorize most of the fundamentals but it makes your life so much easier if you can just understand the concepts. This way not matter how they through the question at you, you'll be able to work through it. I'd rather spend my time memorizing quant than FSA.